Bitcoin sharply retreats to around $71,000 as Iran fears and weak U.S. inflation data weigh on markets.

Bitcoin (BTC $70,458.43) broke out of its recent calm near $74,000 on Wednesday as rising tensions in Iran combined with stronger-than-expected U.S. inflation data to spook markets.

The selloff began after U.S. President Donald Trump adopted a hardline stance on Iran, calling it the “NUMBER ONE STATE SPONSOR OF TERROR,” while Iran’s state TV reported an attack on part of the South Pars gas field. The situation intensified following reports that Israel killed Iran’s Intelligence Minister Esmail Khatib and the U.S. deployed 5,000-pound bunker-buster bombs targeting missile sites near the Strait of Hormuz, a crucial route for global oil shipments.

WTI crude surged from $92 per barrel overnight to nearly $96. Minutes later, U.S. February PPI data showed headline PPI up 0.7% versus 0.3% expected, and core PPI rising 0.5% versus 0.3%, signaling persistent inflation pressures predating the oil spike.

Bitcoin fell toward $71,000, down 3.5% in 24 hours, while ether (ETH), solana (SOL), and XRP (XRP) dropped closer to 5%. U.S. equities were modestly lower, with the Nasdaq and S&P 500 down 0.4%, and gold slid 2.5% to $4,885 per ounce.

Investors now await the Federal Reserve meeting, expected to hold rates steady, with attention on Chair Jerome Powell’s guidance amid inflation and geopolitical uncertainty. Trump’s renewed calls for rate cuts added a political dimension to the day.